2 days ago
- Business
- New Straits Times
KWAP to advance Malaysia's sustainability agenda via forest-based initiatives
KUALA LUMPUR: Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has signed a memorandum of understanding (MoU) with Malaysia Forest Fund (MFF) to advance Malaysia's sustainability agenda through forest-based solutions.
Chief executive officer Datuk Nik Amlizan Mohamed said the collaboration will be a game-changer for both KWAP and Malaysia's broader sustainability efforts, reinforcing its commitment to drive stewardship through impactful actions and pursuing purpose beyond returns.
"By contributing to the development of a credible, nationally anchored carbon ecosystem, we aim to empower our investee companies with the tools they need to meet their net-zero commitment while also making significant contributions to Malaysia's climate and biodiversity goals," she said.
The MoU features the Forest Conservation Certificate to support domestic conservation initiatives, focusing on preserving the country's vital biodiversity and ecosystems.
MFF will oversee the development of the forest carbon offset, a market-based mechanism that allows companies to offset their emissions through investments in forest conservation projects that reduce, remove and avoid carbon emissions.
Through the partnership, KWAP becomes a participant in the National Forest Carbon Offset technical working group established by MFF.
The working group aims to ensure the needs of institutional investors, including the nuances of ESG investing, are integrated into the framework, where relevant.
This participation will also help align foreign carbon offset standards with international carbon market requirements and best practices.
MFF chief executive officer Datuk Shah Redza Hussein said the partnership is a pivotal step in the mission to strengthen Malaysia's carbon market, achieving the nation's sustainability targets and accelerate meaningful climate action.
"By leveraging nature-based solutions, particularly through the Forest Conservation Certificate and the upcoming Forest Carbon Offset, we are creating a pathway for businesses towards achieving net-zero goals while supporting forest conservation, aligning with national climate commitments.
"Our work with KWAP and other stakeholders will drive long-term environmental and economic benefits, not only for Malaysia but for the global community as we strive towards a greener and more resilient future," he added.
KWAP and MFF will continue to explore opportunities to enhance the forest carbon offset system and other potential nature-based solutions initiatives, ensuring they become key drivers for sustainable development in Malaysia.
The partnership will also support ongoing efforts to build local capacity for biodiversity and forestry management, ensuring that the benefits of the projects reach the communities directly involved.
KWAP also will continue working with MFF by engaging interested parties to drive joint initiatives.
This includes possible partnerships with other government-linked investment companies and organisations, in support of the GEAR-uP seek to build upon its collaboration with MFF by engaging interested parties in driving collective action.
